Xianyu

Local start-ups and a major global resale player are amping up investments in China, where policymakers and investors are betting on the circular economy.

Before the pandemic there were hopes that young Chinese consumers were finally warming to the idea of luxury resale after cultural taboos about secondhand clothes abated. But with post-virus safety concerns now front of mind the market has hit another impasse.

Brands need to investigate how consumer debt will impact their recovery plans in the world’s largest luxury market. While some experts downplay concerns, others believe it could throw a spanner in the works.